Hi, is there any financial advisor who can help in severe debt conditions? Have Bank loans, NBFC and money on interest from people

Ans: I understand your concern about being in a debt trap. It's essential to seek professional help to manage and reduce your debt. You can consult a certified financial planner or a debt counselor who specializes in debt management. They can help you create a realistic budget, negotiate with lenders for better terms, and create a repayment plan tailored to your income and expenses. It's crucial to act promptly and consistently follow the plan to gradually reduce and eventually eliminate your debt.

Ans: You are facing a serious financial challenge. But with a structured and practical approach, it is manageable. You can turn it around with right steps. Let me guide you professionally, step by step.

Current Debt Situation Assessment
Your total debt is Rs. 30 lakhs.

These are all unsecured loans. No collateral involved.

You earn Rs. 70,000 per month.

This means your EMI commitments are likely more than 60% of your income.

This is financially unsustainable.

Your credit score is between 650 and 700.

This shows some payment delays or defaults may have happened.

You are also under mental and emotional pressure. This is understandable.

Debt Management Priority Planning
First, stop borrowing more to pay existing loans.

Do not use credit cards or instant apps now.

Your first focus should be to regain cash flow stability.

List all your loans in one place: amount, EMI, interest, lender name.

Note down which loan is the costliest. Also note which one is defaulted.

Prioritise loans with higher interest and legal impact.

If you are already defaulting EMIs, speak to your lenders.

Ask for temporary moratorium or restructuring.

Keep all communications documented. Send follow-ups by email also.

Try to avoid legal escalation. That brings long-term damage.

Debt Consolidation Evaluation
Yes, there are agencies who help in loan consolidation.

These are not regulated fully. Be careful in choosing them.

You can also talk to banks or NBFCs directly.

Some banks give top-up personal loans to close other loans.

But your credit score may be a hurdle for such loans.

If you have a trustworthy family member with better credit, consider loan on their name.

That loan can be used to pay off your high-cost debts.

Try to convert high-interest loans to lower-interest ones.

For example, a credit card interest of 36% can be replaced with 14% loan.

But take new loan only if it reduces your monthly EMI burden.

And don’t use new loans for spending. Use it only to close earlier loans.

Debt Settlement Possibilities
Debt settlement is an option when repayment is not possible.

You can offer a lump sum to close the loan at lower amount.

But this impacts your credit score severely.

It is shown as “settled” in your CIBIL for 7 years.

Use this option only when you are completely out of options.

Speak to the bank’s collection team for settlement negotiation.

Some agencies also help in negotiation. But they charge high fees.

Be cautious of frauds. Don’t pay upfront fees to unknown agents.

If you use settlement, start rebuilding credit immediately.

Budget Optimisation and Expense Control
Next, create a monthly spending plan. Every rupee should have a purpose.

Eliminate all unnecessary expenses. Focus only on needs.

Cut down lifestyle and avoid non-essential EMI purchases.

Avoid eating out, entertainment, shopping, and weekend trips.

Don’t use BNPL or UPI credit services.

Try to live on Rs. 30,000 per month.

Use balance Rs. 40,000 for minimum EMIs and emergency.

Avoid using credit card to meet shortfall.

Emergency Support Actions
If you have gold jewellery, consider gold loan. Not gold sale.

Gold loan can be taken at 8%–10% rate. This is much cheaper than credit cards.

Use gold loan only to repay high interest unsecured loans.

You can repay the gold loan slowly and safely.

Avoid pawn brokers. Go to banks or approved NBFCs.

Income Enhancement Actions
Explore freelance or part-time work options. Even Rs. 5,000 helps.

Sell any unused items: electronics, gadgets, appliances.

Use online resale platforms. Small amounts add up.

If family members can contribute income, include that temporarily.

Try to improve your job skill and aim for salary hike in 6 months.

Long term recovery needs higher income, not just lower expenses.

Mental Health and Family Communication
You are under pressure. Please talk to someone close.

Mental stress can harm both money and health.

Share your situation with family members if possible.

Get emotional and moral support. It makes a big difference.

Don’t isolate yourself. Speak to one person daily.

Credit Score Repair Strategy
Once EMI payments are stable, credit score will start improving.

Make minimum payments on time every month.

Don’t close old credit cards if they are not overdue.

Avoid new credit applications for next 12 months.

Keep one secured credit line open. Eg: fixed deposit backed credit card.

Keep credit utilisation low. Below 30% of the limit.

Check CIBIL report once every quarter. Correct any errors.

Avoid These Common Mistakes
Don’t take advice from agents or YouTube without checking background.

Don’t share PAN, OTP, or bank details with any unknown party.

Don’t trust anyone who promises “loan wipe off” or “instant CIBIL fix.”

Avoid investing in unknown schemes now. Focus only on reducing debt.

Don’t take LIC policy loans unless policy is close to maturity.

Future Plan Once Loans Are Settled
Once your cash flow is clear, create emergency fund of 6 months income.

Start SIP in actively managed mutual funds through MFD with CFP certification.

Regular funds give guidance and support when markets are volatile.

Direct funds look cheaper, but they lack professional guidance.

Wrong direct fund choices may cost more than regular fund commissions.

Focus on wealth building only after clearing liabilities.

Insurance must be separate. Buy term plan only.

Don’t mix insurance and investment. ULIPs and endowment are not suitable.

Finally
Your situation is hard. But not impossible.

You need a clear plan, daily focus, and patience.

You can turn around your life in 24 to 36 months.

Many have done this before. You can do it too.

Take one action per day. Progress will follow.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You’ve taken a very responsible step. Wanting to repay debt — not settle — shows commitment. Let’s now assess both options: SingleDebt and Freed.care from a professional and practical lens.

»Understanding SingleDebt

– SingleDebt offers EMI management and legal help.
– Many users initially feel relief from creditor calls.
– Some clients report easy onboarding and good early support.
– But deeper issues emerge later for many.
– High fees are charged upfront in many cases.
– Some users say communication drops after payment.
– Many report they keep paying EMIs but lenders don’t receive them.
– Refunds are often denied when people try to exit.

»Understanding Freed.care

– Freed.care markets itself as a structured debt resolution service.
– They claim to negotiate and reduce your monthly debt burden.
– Many clients say they got long-term plans with reduced stress.
– But others report poor follow-up.
– Some mention that they kept paying fees without seeing results.
– Refund issues are also common in public feedback.
– The company sometimes takes too long to respond.
– Repeated delays break trust for many users.

»User Experience: Summary of Issues Seen

– Both companies show mixed reviews.
– Some users get relief. Others feel trapped again.
– Many complaints focus on non-refunded charges.
– Support sometimes stops after onboarding.
– Users feel alone once issues arise.
– There’s often a gap between promise and action.
– Most concerns are about accountability and clarity.

»Risks in Both Approaches

– Hidden charges may exist.
– Promises may not match final results.
– No personal control over your EMI flow.
– EMIs are routed through these agencies, not directly to lenders.
– You may default if the agency delays payments.
– That can damage your credit score even further.
– Most contracts are one-sided.
– Refunds and service discontinuation can be difficult.
– Legal backing offered may be minimal.

»What You Should Look for Instead

Talk to your lenders directly.

Ask for longer repayment terms.

Explore reducing interest rate or EMI burden.

Ask for a personal loan balance transfer.

Approach a bank or NBFC for a consolidation loan.

Direct lender talks build trust and reduce cost.

Agencies are middlemen — not needed if negotiation is possible.

»Step-by-Step Path for DIY Debt Resolution

List all current loans, interest rates, and EMIs.

Classify them into urgent and flexible debts.

Begin with high-interest personal loans or credit cards.

Talk to lenders about repayment holidays or step-up EMIs.

If multiple loans exist, use a single personal loan to repay them.

This helps reduce monthly strain.

Avoid delay — interest compounds monthly.

If income is tight, cut spending temporarily.

Use monthly savings to add buffer against EMIs.

»When You Might Still Need Help

If your lenders refuse any negotiations.

If you have multiple legal notices pending.

If harassment is high and unmanageable.

Even then, choose help very carefully.

Avoid anyone demanding big upfront fees.

Ask for written documentation before paying anything.

If they don’t allow exit from service anytime, avoid them.

»How to Assess a Debt Service Provider

Do they offer free first consultation?

Is the contract clear, short, and refundable if services fail?

Are EMIs paid directly to banks, not routed?

Do they allow stopping service anytime without penalty?

Do they disclose total fees in writing?

Will they show evidence of negotiations done with lenders?

If answers to the above are no or unclear, then it’s better to avoid.

»Build Safety After Clearing Debt

After loans are cleared, begin a basic savings SIP.

First goal is an emergency fund worth 3 to 6 months of expenses.

Then invest for medium- and long-term goals.

Don’t combine insurance and investment.

Don’t go back to credit cards for routine purchases.

Stay disciplined with cash flow and EMI tracking.

»Final Thoughts on SingleDebt vs Freed.care

– Both offer debt help but carry execution risks.
– They may not always keep promises.
– Direct negotiation with banks or NBFCs is better.
– Avoid new stress through unknown third parties.
– Use your time and energy to take control back.
– Make lenders partners in solution — not enemies.
– Build long-term financial health after this crisis ends.
– If needed, work with a Certified Financial Planner.
– A CFP can guide better debt handling and investment planning.
– Freedom from debt is a process — not a quick fix.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment